{"id":50026,"date":"2026-06-08T16:48:25","date_gmt":"2026-06-08T13:48:25","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?post_type=glossary_term&p=50026"},"modified":"2026-06-08T16:48:41","modified_gmt":"2026-06-08T13:48:41","slug":"principal","status":"publish","type":"glossary_term","link":"https:\/\/www.commercialcafe.com\/blog\/glossary\/principal\/","title":{"rendered":"Principal"},"content":{"rendered":"

In real estate, principal has two common meanings<\/strong>. One is the original sum borrowed on a loan, before interest. The other is a party directly in a deal, such as the buyer, seller, or investor, as opposed to an agent or broker acting for them.<\/p>\n

As a loan component, the principal balance decreases over time as payments are made, building equity for the property owner. As a transactional party, the principal bears the financial risk and ultimate decision-making authority, while agents and brokers act in a fiduciary or representative capacity on their behalf.<\/p>\n","protected":false},"excerpt":{"rendered":"

In real estate, principal has two common meanings. One is the original sum borrowed on a loan, before interest. The other is a party directly in a deal, such as the buyer, seller, or investor, as opposed to an agent or broker acting for them. As a loan component, the principal balance decreases over time…<\/p>\n","protected":false},"template":"","glossary_category":[8647],"class_list":["post-50026","glossary_term","type-glossary_term","status-publish","hentry","glossary_category-agents-professionals","wpautop"],"acf":[],"yoast_head":"\nPrincipal | CRE Glossary<\/title>\n<meta name=\"description\" content=\"The two meanings of principal in commercial real estate: the original loan balance, and a primary party to a transaction as opposed to a broker or agent.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Principal\" \/>\n<meta property=\"og:description\" content=\"The two meanings of principal in commercial real estate: the original loan balance, and a primary party to a transaction as opposed to a broker or agent.\" \/>\n<meta property=\"og:url\" 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